March 22, 2007 - 2007 Provincial Budget Highlights

General Information

Finance Minister Greg Sorbara presented the 2007 provincial budget as a balanced budget, the first since the Liberals came to power inheriting a $5.5 billion deficit.  For the fiscal year ending March 2007, the Minister reports a surplus of  $310 million. 

• Surpluses are projected for the next three years.
• Financial growth is projected to be 1.6% in 2007, 2.8% in 2008, and 3.1 % in 2009.
• The budget includes no personal tax increases or tax cuts.

Elementary & Secondary Education

The Budget does not announce any new funding for elementary and secondary education beyond the information provided in the Grants for Student Needs (GSN) announcement on March 19.  (See the memorandum highlighting the grants posted in Secure Services on the ETFO website.)  

• Funding for 2007-08 is projected to be $18.26 billion, an increase of $781 million over last year.
• The budget reports an additional 4,800 elementary teachers since the Liberals were elected.
• The funding is on track with the four-year funding plan announced in the Liberals’ first budget in 2004.
• The grants are projected to increase to an estimated $9,669 per pupil for a total of $18.6 billion in 2008-09.  This represents a 1.6% increase over 2007-08.

Child Care

Federal funding for child care ends as of March 31, 2007 as a result of the Harper government cancelling the federal-provincial/territorial child care funding agreements.

• The Budget will increase provincial funding for child care by $25 million to sustain the additional 15,000 subsidized child care spaces created through the first two years of the federal-provincial agreement.  Child care lobbyists were calling for at least a $300 increase in provincial funding to expand the system and enhance supports for early childhood educators.  The Liberals promised the additional $300 million prior to the 2003 election.

Social Supports for Low-Income Ontarians

Responding to criticism from many quarters, including ETFO, the government states the 2007 budget focuses on addressing child poverty.

Ontario Child Benefit (OCB)

• The government will invest $2.1 billion over five years in supports for children.
• Beginning in July 2007, low-income families will receive a “down payment” of $250 per child under the age of 18.  By 2011, low-income families will be eligible for up to $1,100 per child annually.
• The government claims the OCB goes well beyond ending the clawback of the National Child Benefit Supplement demanded by anti-poverty advocates.

Ontario Disability Support and Ontario Works

• Payments to recipients of the Ontario Disability Support and Ontario Works benefits will be increased by 2% effective November 2007.

Minimum Wage

• Responding to a very successful $10 minimum wage campaign, the Budget announces the province will be increasing the minimum wage by $0.75 annually from the current $8 per hour until it reaches $10.25 on March 31, 2010.  Those supporting the minimum wage campaign, including ETFO, have been calling for an immediate increase to the $10 rate.

Affordable Housing

• Low-income Ontarians will receive $100 per month in housing supplements.
• Municipalities will receive $127 million to build new affordable housing and to rehabilitate existing stock. This is the first time since the fall of the NDP government that the province has invested in new social housing.
• Funding is provided to build over 1,000 off-reserve homes for aboriginal families.

Environment

• The government has announced a number of initiatives geared to the protection of the environment. Further announcements are planned for the coming months.
• Homeowners will be provided a rebate of up to $150 for energy audits.
• $2 million is being provided to Trees Ontario Foundation to help offset carbon dioxide emissions.
• The Budget also announces a number of investments in green research initiatives and significant investments in public transit for municipalities.

Fairer Property Tax Assessment

• The government announced intentions to reform the property tax assessment and to implement a four-year assessment cycle.  Beginning in 2009, any increase in value would be phased in over four years; assessment decreases will apply immediately.